CITIC Tokyo International commences its role as stewards of your wealth by posing an innocuous but fairly stark question, “What do you want to accomplish?”

One might be forgiven for expecting answers along the lines of “to make as much money as possible” but you may be surprised to hear that, in recent years, the most common answers center on themes like “piece of mind”, “security” and increasingly, “to protect what I already have”.

This is particularly revealing because, despite the fact that our clients come from varying walks and are at various junctures in life, there is a noticeable trend towards preservation. Without doubt, this unprecedented trend has its roots in the perfectly reasonable anxiety and concern that many feel about the inexorable deterioration in the amount of control they have over what governments and once-unassailable banks will do next that will have direct and doubtless detrimental impact on what their money is worth and what it may or may not be able to buy in the future.

Naturally, we acknowledge that wealth can create opportunities and present choices but we also appreciate that figuring out what to do with it in terms of investing can cause much consternation.CITIC Tokyo International can guide you in the right direction.

Our wealth management offering takes a holistic view of your entire financial structure including assets, liabilities, real estate, investments, retirement accounts and calls upon the years of experience of some of the most effective wealth managers in our industry. This means that each client benefits from 100% bespoke management based on their individual circumstances.

Implementation

CITIC Tokyo International are proponents of Modern Portfolio Theory. This compels us to judiciously evaluate matters involving asset allocation and proper diversification and how they relate to the likelihood that your portfolio will achieve the objectives set down in the detailed report provided to you by your IC.

Asset allocation and diversification tend to sound rather boring as concepts but they are critical when reducing risk in investment portfolios. Understandably, risk is a phenomenon that has risen to prominence in recent years following well-documented events of 2008 and one that threatens the very foundations underpinning the way of life in developed economies.

No longer is it a case of merely depositing one’s capital with the bank or savings and loan institution and waiting patiently for a number of years for compound interest to work because, frankly, real interest rates mean that most doing so are actually paying such institutions to hold their money. Central banks have cut interest rates to near-zero and governments persist in the age-old practice of understating the rate of inflation so by the time you retrieve your capital, not only has its purchasing power has been decimated by inflation but it likely won’t have increased in nominal terms.

Sadly, the investment world is a markedly different one from what it was during less trying times.

Nevertheless, it is still possible to enhance your wealth and conserve its purchasing power without being exposed and your capital to excessive levels of risk and CITIC Tokyo International can show you how.

Assessment

Immediately upon engaging CITIC Tokyo International, our focus centers on you. You will be assigned a seasoned investment counselor (IC) whose task it is to become familiar with your needs and goals. We achieve this by asking targeted and pertinent questions about your current liabilities, assets, existing investments and your vision for the future. Your IC will then collaborate with you to devise a wealth management plan that takes into account every aspect of your financial make-up.

Your IC will need to be satisfied that the proposed wealth management plan will accurately reflect your personal and financial goals. They will spend as long as necessary to gauge your risk tolerance since this will have a profound impact upon how the investment aspect of your wealth management plan performs. Usually, compromises have to be made in this regard since, naturally, all investors desire scintillating returns with no risk and, as much as we’d like to offer investments with those characteristics, we would be remiss in our fiduciary obligation to you if we gave you the impression this was actually possible.

Once your IC is suitably familiar with your circumstances and will provide a detailed, written summary of the findings together with a tentative plan aimed at addressing areas requiring attention.

Monitoring

CITIC Tokyo International feels very strongly that knowing how one’s investments are performing is a habit to be developed at the earliest possible opportunity. We like clients to retain an interest in the job we are doing rather than simply sign forms and authorities and forget about them.

Your CITIC Tokyo International IC and the administrative department that supports his/her efforts monitor your portfolio and gauge performance, evaluate the results against performance targets and suggest adjustments as your personal circumstances or prevailing market conditions dictate.

You are sent our quarterly newsletter and detailed performance reports that keep you advised of the returns your portfolio has generated together with a market bulletin setting out our view on current trends. Occasionally, we will send you special information on pertinent and newsworthy economic issues. At least annually we aim to meet formally or via conference call to go over your wealth management program and your portfolio’s investment allocations and performances.

We may see fit to recommend a rebalancing of your portfolio in line with our investment philosophy. Rebalancing is a feature of your plan that keeps it representative of your circumstances and on course to meet your objectives. Naturally, we understand the desire to hold on to a winning position, but this can often result in less-than-optimum portfolio performance.

Our discipline bypasses this instinct and allows us to sell the holdings that have performed well with the aim of either re-investing proceeds into a component of the portfolio that has under-performed or reverting to cash in anticipation of forthcoming opportunities. This is effectively a buy low – sell high strategy which, of course, is the ultimate wish of every investor.

Estate Planning

Regardless of the stage of life you are at, our professionals can help you plan for the next phase.

While much of investment planning is concerned with acquiring and preserving assets, estate planning tends to revolve around determining the best way to distribute assets. Many people are, understandably, uncomfortable talking about estate planning but, without an estate plan, everything and everyone a client holds dear could be at risk.

The old adage that says “failing to plan is planning to fail” is particularly apt when applied to the business of planning one’s estate. One’s spouse, children and existing special needs may be inadequately provided for without a comprehensive estate plan. One’s estate may attract more attention from the tax authorities than necessary; business succession strategies may not be implemented.

At CITIC Tokyo International, our skilled professionals have built an enviable reputation for precise and efficient estate administration. They have both the qualifications and years of experience to administer large and complex estates. Whether an estate is settled under the terms of a will or a trust agreement, CITIC Tokyo International provides the expert service our clients’ affairs demand. We act as impartial agents to ensure that client wishes are executed in accordance with their legal documents; this impartiality can be essential in keeping peace among family members.